
Why Medicaid relief?
North Carolina is the only state that requires counties to pay a fixed percentage of all Medicaid services costs. Counties are projected to spend more than $517 million for the non-federal share of Medicaid in 2007-08, crippling some counties' ability to fund other essential needs, such as public education.
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OUR GOAL
(as adopted by members at the 2007 Legislative Goals Conference)
Medicaid Relief – Seek permanent Medicaid relief for counties.
2007-08 legislative goals: HTML | PDF
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2007-08 projected county share: XLS | PDF
Actual 2005-06 FY county Medicaid payments (basis for freeze)
Sample Medicaid resolution for counties (Word document) | Fact sheet (PDF)
How Medicaid costs are shared (PDF): 2006-07 | 2005-06
The latest on Medicaid relief
Updated Wednesday, Aug. 1, 2007
Priority legislative goals of Medicaid relief and additional county revenue options became official July 31 following Gov. Mike Easley's signing of the budget. The budget includes a three-year phaseout of county Medicaid expenses in exchange for a gradual assumption of the Article 44 sales tax. All counties are guaranteed at least $500,000 per year under the plan. In addition, the budget includes authority for counties to levy either a 0.4 percent land transfer tax or a quarter-cent sales tax, subject to voter referendum. There is no restriction on how the proceeds can be used.
Recent Medicaid alerts from the NCACC (updated May 29, 2007)
Contact your state representatives!
Visit, call or e-mail members of the North Carolina General Assembly and voice your support for Medicaid relief.
| Medicaid reform-related legislation: 2007 session |
| Bill |
Primary sponsor(s) |
Status |
Legislative Bulletin No(s). |
| Medicaid relief legislation tracker |
| H1016 |
Dickson, Wainwright, Carney, Barnhart |
Referred to House Finance July 18 |
#07-26; #07-25 |
| H2030 |
Mobley |
Filed May 9 |
N/A |
| H2004 |
Blust |
Filed May 9 |
N/A |
| H1424 |
Owens, Michaux, Stam, Yongue |
Referred to House Appropriations on April 12 |
#07-13, #07-12 |
| S1484 |
Rand |
Referred to Senate Finance on March 27 |
#07-21, #07-18, #07-10 |
| H1140 |
Gibson |
Referred to House Finance on March 28 |
#07-10 |
| H560 |
Holloway |
Referred to House Appropriations on March 12 |
#07-07 |
| S213 |
Brock |
Referred to Senate Appropriations on Feb. 20 |
#07-05 |
| H57 |
Howard, Yongue, Carney, Almond |
Referred to House Appropriations on Feb. 13 |
#07-02 |
Medicaid impacts all counties - some more than others
| What percentage of county residents are Medicaid eligible? |
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How much of an impact is Medicaid having on county budgets? |
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What is the effect of rising Medicaid costs on county citizens? |
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| See the list |
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See the list |
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See the list |
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Permanent and complete county Medicaid relief signed into law
When Gov. Mike Easley signed the 2007 budget into law Tuesday, it set in motion the end of county financial participation in Medicaid. The budget provides for a three-year phaseout of county Medicaid expenses in exchange for a gradual assumption of a half-cent local sales tax. The General Assembly and the Governor’s Office also recognized the need for additional revenue authority for counties to meet their growing infrastructure demands.
- Click here for more from Legislative Bulletin #07-28.
Medicaid relief, additional revenue authority purportedly in budget
Budget negotiators reached agreement late Wednesday on most remaining budget items in contention, including county Medicaid relief and additional county revenue authority. Based on discussion with legislative leaders and staff, counties can expect to see a phaseout of county Medicaid expenses over three years and additional authority to levy either a 0.4 percent land transfer tax or a quarter-cent sales tax, subject to voter referendum.
- Click here for more from Legislative Bulletin #07-27.
Governor Easley goes to bat for county Medicaid relief, revenue options
Governor Mike Easley reaffirmed the importance he places on the historical partnership between counties and the State of North Carolina on July 20 during a press conference. Governor Easley again called for immediate and permanent county Medicaid relief and stated his support for additional county revenue sources that could bring property tax relief.
- Click here for more information.
News archive
- Click here for NCACC releases prior to March 2007.

State budget takes burden off counties (The Herald-Sun of Durham - July 31)
County looks to Raleigh for relief in budget (The Daily Reflector of Greenville - July 27)
Move on Medicaid (The Charlotte Observer - July 22)
Medicaid reform long overdue (Roanoke Daily Herald - July 6)
Medicaid burden does not require any new taxes for Tar Heels (The Times News of Burlington - July 2)
Sensible end to Medicaid $$$ burden (The News Reporter of Columbus County - July 2)
Medicaid Rx: Get it done (The Robesonian - June 26)
Legislators should use extra cash to cut taxes, Medicaid burden (The Fayetteville Observer - June 25)
Medicaid relief bill should be enacted (Hickory Daily Record - June 3)
Medicaid system needs revamping (Washington Daily News - May 15)
Budget helps reduce burden of Medicaid (The News Reporter of Columbus County - May 14)
Deja blues (The Robesonian - May 12)
Good start on hard task (The Charlotte Observer - April 17)
State must give counties a break on Medicaid costs (The Daily Southerner of Edgecombe County - April 17)
Putting the aid in Medicaid (The Daily Tar Heel - April 16)
Sampson needs a Medicaid life raft (The Sampson Independent - April 12)
State must give counties a break on Medicaid costs (Citizen-Times of Asheville - April 10)
Medicaid Relief (Winston-Salem Journal - March 12)
State needs to step up (Richmond County Daily Journal - March 1)
- Click here for media editorials prior to January 2007.

Finally, Medicaid relief for Mitchell (Mitchell News-Journal - Aug. 1)
Burdens shortly lifted (The Observer News Enterprise of Newton - Aug. 1)
State budget gives Medicaid relief by cutting into ADM, local sales tax $$ (The Franklin Times - Aug. 1)
Medicaid relief one signature from OK (The Star of Cleveland County - July 31)
Medicaid relief plan raises questions (Rocky Mount Telegram - July 31)
Durham reaps budget bounty (The Herald-Sun of Durham - July 31)
State budget relieves local Medicaid burden (Times-News of Burlington - July 31)
Area leaders react to plan for Medicaid (Goldsboro News-Argus - July 29)
Budget allows votes on new taxes (Star-News of Wilmington - July 29)
Pitt County officials laud state budget plan (The Daily Reflector of Greenville - July 29)
Legislators strike deal on budget (The Fayetteville Observer - July 29)
Plan offers counties relief (The Charlotte Observer - July 28)
Deal struck on land-sale tax option (The News & Observer of Raleigh - July 27)
Budget may give options on taxes (The Daily Reflector of Greenville - July 27)
Medicaid bill could be a Band-Aid on local property owners' pocketbooks (The Gaston Gazette - July 27)
State budget riding on deals (The Fayetteville Observer - July 26)
State Medicaid vote could open up county’s budget (The Sanford Herald - July 24)
Sampson BOC looks at Medicaid plan for 2007-08 fiscal year (The Sampson Independent - July 21)
County may see some Medicaid relief (The Free Press of Kinston - July 19)
County could save $2 million in Medicaid (Cherokee Sentinel - July 18, 2007)
Local officials laud Medicaid relief proposal (The Star of Cleveland County - July 13)
Senate plan offers swap (Carteret County News-Times - July 13)
Senate passes Medicaid (The Observer News Enterprise of Newton - July 13)
NC Senate agrees to Medicaid swap, chances in House unclear (The Associated Press - July 12)
State may lift $2.7M Medicaid burden (The McDowell News - July 12)
Panel OKs Medicaid relief (The Robesonian - July 12)
Medicaid bill votes today (The Observer News Enterprise of Newton - July 12)
Medicaid bill proposes county relief (Richmond County Daily Journal - July 12)
Medicaid-reform bill drops cap on city sales tax (Winston-Salem Journal - July 12)
Medicaid plan eyed by Senate (Rocky Mount Telegram - July 11)
State panel agrees to deal on Medicaid (The Associated Press - July 11)
Medicaid burden irks board (The Star of Cleveland County - July 11)
Medicaid relief still alive (The Robesonian - July 10)
County still has to pay for Medicaid (The Daily News of Jacksonville - July 9)
Medicaid burden weighs heavily on local budgets (The High Point Enterprise - July 8)
Senate delays vote on lifting Medicare burden from counties (The Daily Dispatch of Vance County - July 6)
Counties await Medicaid answer (The Free Press of Kinston - July 6)
Transfer Tax, State Budget Remain in Air (Southern Pines Pilot - July 6)
Medicaid aid looks iffy for counties (The Morganton News Herald - July 5)
Sales Tax Increase Eyed for Medicaid Relief (WRAL TV 5 of Raleigh - July 3)
Lawmakers Debate Sales, Real Estate Taxes (NBC 17 of Raleigh - July 3)
Medicaid compromise struck in N.C. (Daily Herald of Roanoke Rapids - July 3)
Could Medicaid relief stop county tax hike (The Sampson Independent - July 2)
No new budget for Martin (Washington Daily News - July 2)
Medicaid big item in budget impasse (News-Record of Greensboro - July 1)
- Click here for media stories prior to July 2007.
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